- SWFX market sentiment is 69% bullish
- 58% of pending orders in a 100-pip range to sell
- Gains could be capped near 108.70
- No fundamental events in this session
The Institute for Supply Management reported that its PMI for the US non-manufacturing sector posted weaker-than-expected increase to 55.3 in August, following the prior month's figure of 53.9.
An expansion was fuelled by strong increase in new orders and employment, suggesting the weaker job growth registered last month was temporary. Data indicated the US economy is set to gather momentum early in the Q3.
No fundamental events
No economic events that could affect the USD/JPY currency pair are scheduled for this trading session.
USD/JPY encounters combined resistance
As it was expected, the new trading week the Greenback started in a recovery against the Yen. A breakout near the 107.40 mark suggests that the pair is moving in a new junior descending channel. If this assumption is correct, the buck is expected to try to surge towards the monthly PP at 109.76. Yet this target might not be reached from the first attempt, as road to the north is obstructed by a combined resistance level that consists of the weekly PP, the monthly S1 as well as the 55- and 100-hour SMAs. From a daily perspective, this barrier also seems too strong to be crossed. In other words, a new descending channel on a larger timeframe points out that the fourth rebound is expected to follow.Hourly chart
Even though the US Dollar plunged as low as the 107.30 mark against the Yen on Friday, bulls managed to limit daily losses until 107.84. Meanwhile, this morning was marked by an attempt to move above the weekly S1 at 108.49. In case the Greenback succeeds, the next resistance is set by the 20-hour SMA at 109.50.
Daily chart
SWFX market sentiment has remained at Friday's level, as 69% of traders are holding open positions in this session. Meanwhile, 59% of pending orders are to buy the US Dollar (+3%).
OANDA is bullish on the pair, with 64% of its clients having long positions (-2%). Similar viewpoint is held by Saxo Bank clients with 59% long positions (unchanged from Friday).